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Friday, 23 October 09
CIL PRICE HIKE LIKELY TO PUSH POWER RATES UP
 Business-Standard reported that, May squeeze cement companies’ margins, but the steel sector is unlikely to be affected much.
The upward revision of coal prices by government-owned Coal India Limited (CIL), which took place last week, is likely to have a divergent impact on the fossil fuel’s primary consumers such as cement, power and steel sectors. While cement makers’ margins will be under pressure, power producers will make a move to pass on the increased burden to consumers.The three sectors account for about 72 per cent of the total coal demand in the country.
On October 16, CIL increased the price of coal from Eastern Coalfields (ECL) and Bharat Coking Coal (BCCL) by 15 per cent, while all other subsidiary companies were permitted a hike of 10 per cent. This price increase is expected to swell CIL’s net profit by approximately Rs 2,000 crore this financial year and by about Rs 4,100 crore in the following year.
However, for the consuming sectors, especially the cement industry, the increase in coal prices will squeeze profit margins at a time when prices are already low due to rapid capacity augmentation.
Despite the fact that coal accounted for around two-thirds of the power and fuel cost, and 20 per cent of the total cost for cement manufacturers, firms would be unable to pass on the hike in coal prices to end users due to the current business environment, a report by Crisil Research suggested.
“The recent coal price hike will increase the cost of cement by Rs 3-4 a bag. However, this has been absorbed by manufacturers in the short-term. In the long run, though, if conditions are right, we could pass on the cost,” Cement Manufacturers Association President and Shree Cement Managing Director HM Bangur said. For the power sector, though, the impact of the upward revision of coal prices would be neutral, as the rise in cost of fuel would be passed on by the generators.
On an average, tariffs of power plants using domestic coal as fuel are expected to increase by 3-4 per cent. In rupee terms, the tariffs are expected to increase on an average by Rs 0.06 a unit. The rise is expected to increase the tariffs for final power consumers as the price hike will be passed on, the Crisil report further stated.
With the respective regulatory authorities of each state overseeing power tariffs, generators would first have to ascertain the increase in input costs and then approach the regulator for approval.
However, with the coal mixture of each generator differing, the choice being between CIL coal and that of the imported variety, it would take sometime before power utilities decide on the actual magnitude of the increase in tariff. “But 100 per cent, we will have to pass on the cost,” an official from the RPG’s power utility CESC said.
As for the steel industry, the Crisil report indicated that the coal price hike by CIL was not expected to have a significant impact on the steel industry as non-coking coal, which was primarily used by the sector, did not account for a significant portion of the total cost of steel manufacturing, except for steel made through the sponge iron route. Moreover, the dependence of domestic steel producers on CIL is only 25-35 per cent of their total requirement due to the availability of captive mines and imports. But Visa Steel Chairman and President of the Indian Chamber of Commerce Vishambhar Saran said the ex-pit head prices of CIL were already comparable to international prices, barring the freight factor cost. “The cost of setting-up a plant is higher if one is to use domestically available coal as compared to imported coal. This is because the former is of inferior quality and consequently extra costs such as ash disposal must be counted into the total project cost,” he added.
Source: Business-Standard
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Saturday, 11 July 09
THE IMPORT OF STEAM COAL FROM INDONESIA & S/A TO INDIA WILL CONTINUE TO INCREASE - VISTAAR
COALspot.com ( Singapore): Vistaar Shipping, an experienced ship operator in Singapore said, The market continued to be soft this with doubts a ...
Friday, 10 July 09
DMO AND ICPR AIMED AT SECURING DOMESTIC COAL SUPPLY
COALspot.com (Indonesia): According to website of DGCMG, the implementation of coal Domestic Market Obligation (DMO) and the Indonesian Coal P ...
Friday, 10 July 09
INDONESIAN MINING LAW IN TRANSITION
Further to the enactment of Law No. 4 of 2009 on Mineral and Coal Mining (“Law 4/2009”), the enactment of various implementing regulatio ...
Thursday, 09 July 09
COAL EXPORTS TO CHINA MAY FALL AS PRICES, SHIPPING RATES RISE
CHINA'S appetite for Australian coal may fall in July and August from earlier highs, due to a recent recovery in regional prices and higher interna ...
Thursday, 09 July 09
GARDA LISTS SHARES IN LOCAL BOURSE
Local coal company PT Garda Tujuh Buana officially listed its shares in the Indonesia Stock Exchange (IDX).
The listing followed the company's p ...
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- Toyota Tsusho Corporation, Japan
- Siam City Cement - Thailand
- Billiton Holdings Pty Ltd - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Semirara Mining Corp, Philippines
- Parliament of New Zealand
- Orica Australia Pty. Ltd.
- TeaM Sual Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- Indian Energy Exchange, India
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- Larsen & Toubro Limited - India
- Timah Investasi Mineral - Indoneisa
- Metalloyd Limited - United Kingdom
- Kartika Selabumi Mining - Indonesia
- Petron Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- The State Trading Corporation of India Ltd
- Bukit Baiduri Energy - Indonesia
- Lanco Infratech Ltd - India
- Globalindo Alam Lestari - Indonesia
- Chettinad Cement Corporation Ltd - India
- Planning Commission, India
- Semirara Mining and Power Corporation, Philippines
- Coal and Oil Company - UAE
- Australian Commodity Traders Exchange
- Krishnapatnam Port Company Ltd. - India
- Madhucon Powers Ltd - India
- VISA Power Limited - India
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- European Bulk Services B.V. - Netherlands
- Medco Energi Mining Internasional
- Sojitz Corporation - Japan
- Indika Energy - Indonesia
- Videocon Industries ltd - India
- Siam City Cement PLC, Thailand
- Vizag Seaport Private Limited - India
- Oldendorff Carriers - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Karaikal Port Pvt Ltd - India
- Gujarat Sidhee Cement - India
- MS Steel International - UAE
- Commonwealth Bank - Australia
- Mintek Dendrill Indonesia
- Kideco Jaya Agung - Indonesia
- Bhatia International Limited - India
- Aditya Birla Group - India
- IEA Clean Coal Centre - UK
- Eastern Energy - Thailand
- New Zealand Coal & Carbon
- Altura Mining Limited, Indonesia
- CNBM International Corporation - China
- Georgia Ports Authority, United States
- Mercuria Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Formosa Plastics Group - Taiwan
- Economic Council, Georgia
- Electricity Authority, New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Goldman Sachs - Singapore
- ICICI Bank Limited - India
- Pendopo Energi Batubara - Indonesia
- Renaissance Capital - South Africa
- International Coal Ventures Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Bangladesh Power Developement Board
- Minerals Council of Australia
- Indonesian Coal Mining Association
- ASAPP Information Group - India
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Deloitte Consulting - India
- Kumho Petrochemical, South Korea
- Savvy Resources Ltd - HongKong
- Rashtriya Ispat Nigam Limited - India
- Carbofer General Trading SA - India
- Orica Mining Services - Indonesia
- Power Finance Corporation Ltd., India
- Makarim & Taira - Indonesia
- CIMB Investment Bank - Malaysia
- Star Paper Mills Limited - India
- Central Java Power - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Meenaskhi Energy Private Limited - India
- The University of Queensland
- Manunggal Multi Energi - Indonesia
- Coalindo Energy - Indonesia
- Energy Link Ltd, New Zealand
- Thiess Contractors Indonesia
- Ministry of Mines - Canada
- Wilmar Investment Holdings
- Ministry of Finance - Indonesia
- Tamil Nadu electricity Board
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- Miang Besar Coal Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Edison Trading Spa - Italy
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The Treasury - Australian Government
- Romanian Commodities Exchange
- Kaltim Prima Coal - Indonesia
- London Commodity Brokers - England
- Samtan Co., Ltd - South Korea
- Riau Bara Harum - Indonesia
- Ceylon Electricity Board - Sri Lanka
- SMC Global Power, Philippines
- Independent Power Producers Association of India
- Energy Development Corp, Philippines
- Price Waterhouse Coopers - Russia
- Alfred C Toepfer International GmbH - Germany
- Eastern Coal Council - USA
- PNOC Exploration Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- South Luzon Thermal Energy Corporation
- Bukit Makmur.PT - Indonesia
- Iligan Light & Power Inc, Philippines
- Jaiprakash Power Ventures ltd
- Indogreen Group - Indonesia
- San Jose City I Power Corp, Philippines
- Xindia Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- White Energy Company Limited
- Global Business Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Sindya Power Generating Company Private Ltd
- Merrill Lynch Commodities Europe
- Leighton Contractors Pty Ltd - Australia
- Port Waratah Coal Services - Australia
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Ministry of Transport, Egypt
- SMG Consultants - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Agrawal Coal Company - India
- Posco Energy - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sakthi Sugars Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Directorate Of Revenue Intelligence - India
- Coastal Gujarat Power Limited - India
- Jindal Steel & Power Ltd - India
- Essar Steel Hazira Ltd - India
- Sical Logistics Limited - India
- SN Aboitiz Power Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Barasentosa Lestari - Indonesia
- Meralco Power Generation, Philippines
- Simpson Spence & Young - Indonesia
- Standard Chartered Bank - UAE
- McConnell Dowell - Australia
- GAC Shipping (India) Pvt Ltd
- Bhushan Steel Limited - India
- Binh Thuan Hamico - Vietnam
- Indo Tambangraya Megah - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- Cement Manufacturers Association - India
- Kohat Cement Company Ltd. - Pakistan
- Attock Cement Pakistan Limited
- Neyveli Lignite Corporation Ltd, - India
- Petrochimia International Co. Ltd.- Taiwan
- IHS Mccloskey Coal Group - USA
- Global Green Power PLC Corporation, Philippines
- GVK Power & Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Antam Resourcindo - Indonesia
- Salva Resources Pvt Ltd - India
- Australian Coal Association
- Singapore Mercantile Exchange
- Dalmia Cement Bharat India
- Ambuja Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Chamber of Mines of South Africa
- Ind-Barath Power Infra Limited - India
- Tata Chemicals Ltd - India
- Bayan Resources Tbk. - Indonesia
- India Bulls Power Limited - India
- Africa Commodities Group - South Africa
- Parry Sugars Refinery, India
- OPG Power Generation Pvt Ltd - India
- Central Electricity Authority - India
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Generating Authority of Thailand
- PowerSource Philippines DevCo
- Latin American Coal - Colombia
- Vedanta Resources Plc - India
- Rio Tinto Coal - Australia
- Borneo Indobara - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Mjunction Services Limited - India
- Mercator Lines Limited - India
- LBH Netherlands Bv - Netherlands
- AsiaOL BioFuels Corp., Philippines
- PTC India Limited - India
- Indian Oil Corporation Limited
- Malabar Cements Ltd - India
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